THE NATIONAL Asset Management Agency (Nama) has received Fitch’s highest rating for short-term paper, F1+, which will apply to all existing and future issues.
So far Nama, through its wholly owned subsidiary National Asset Management Limited, has issued some € 7.3 billion in senior notes, and € 400 million in subordinated bonds.
The sole purpose of the paper is to purchase eligible loans from institutions participating in Nama and, to date, loans with a nominal value of € 15.3 billion have been transferred from five institutions – AIB, Bank of Ireland, Anglo Irish Bank, Irish Nationwide and EBS.
Given the overall discount of 50 per cent which was applied, total consideration was just € 7.7 billion, in line with the bond issues.
The size of Nama’s short-term paper programme will be in accordance with the total loan value expected to transfer to the agency from participating institutions, and is not expected to exceed € 51.3 billion.
According to Fitch, the F1+ rating indicates relatively low to moderate credit risk, and is in line with Ireland’s sovereign short-term rating, and is based on an “irrevocable and unconditional guarantee” from the Minister for Finance.
